Japan emerged from this stirring tale of political and economic development as an exemplary nation, the only country in Asia that avoided being colonized. The fact that it did so by joining the Western colonialists in victimizing the other countries of Asia was underemphasized in such accounts. Japan’s
The American public, like its policy elites never very well informed about Japan to begin with, bought this rosy picture of that country as the chief bulwark against communism in Asia. John Dower and a few American academic specialists argued that modernization theory was incomplete and that Japan’s militarism had domestic roots every bit as deep as its commitment to modernity, but they were easily ignored.3 Japan was now entrenched in American consciousness as a full-fledged democratic ally with a system rooted in free-market capitalism and certain eventually to “converge” with the United States as a liberal, consumer-based state.
To be sure, there were occasional “misunderstandings” as one nation’s capitalists sought competitive advantage over the other. In dealing with such “unfortunate” developments, the task of diplomacy and the mission of the American embassy in Tokyo became not to champion American interests but to ameliorate the conflict itself, usually to Japan’s advantage. Nothing seriously wrong could come of such policies, it was argued, because, as modernization theory taught, the two societies were on the same developmental path toward common economic ends.
The second aspect of the ideological challenge to the Soviet Union was the development and propagation of an American economic ideology that might counter the promise of Marxism—what today we call “neoclassical economics,” which has gained an intellectual status in American economic activities and governmental affairs similar to that of Marxism-Leninism in the former USSR. Needless to say, Soviet citizens never understood Marxism-Leninism as an ideology until after it had collapsed, just as Americans like to think (or pretend) that their economics is a branch of science, not a fighting doctrine to defend and advance their interests against those of others. They may consider most economists to be untrustworthy witch doctors, but they regard the tenets of a laissez-faire economy—with its cutthroat competition, casino stock exchange, massive inequalities of wealth, and a minor, regulatory role for government—as self-evident truths.
Until the late 1950s, academic economics remained one of the social sciences, like anthropology, sociology, and political science—a non-experimental, often speculative investigation into the ways individuals, families, firms, markets, industries, and national economies behaved under different conditions and influences. It was concerned with full employment, price stability, growth, public finance, labor relations, and similar socioeconomic subjects. After it became the chief ideological counterweight to Marxism-Leninism during the Cold War, its practitioners tried to extract it from the social sciences and re-create it as a hard science.